Types of Bitcoin Moving Averages

There are 4 types of bitcoin trading moving averages:

Simple bitcoin trading Moving Average
Exponential bitcoin trading Moving Average
Smoothed bitcoin trading Moving Average
Linear weighted bitcoin trading Moving Average

The difference among these four bitcoin trading moving averages is how much importance is given to the newest bitcoin price information.

Simple Moving Average

BTCUSD Simple Moving Average indicator applies equal weight to the bitcoin trading data used to calculate the simple moving average and is calculated by summing & adding up the bitcoin price periods of a chart and this value is then divided by the No. of such price periods. For example bitcoin trading simple moving average 10, adds the bitcoin price data for the last 10 bitcoin price periods and divides them by 10.

Exponential Moving Average

Bitcoin Exponential Moving Average indicator applies more weight to the most recent bitcoin price data and is calculated by assigning the latest bitcoin price values more weight based on a percent P, multiplier that's used to multiply & assign more weight to the latest bitcoin price data.

Linear Weighted Moving Average

Bitcoin Linear Weighted Moving Average indicator moving averages applies more weight to the most recent bitcoin price data and the latest data is of more value than earlier bitcoin price data. Linear Weighted bitcoin trading moving average MA is calculated by multiplying each of the bitcoin trading closing btcusd prices within the series, by a certain weight coefficient.

Smoothed Moving Average

Bitcoin SMMA Technical Indicator is calculated by applying a smoothing factor of N, the smoothing out factor is composed of N smoothing for N bitcoin price periods.

The chart below shows simple, exponential, and weighted moving averages for crypto. SMMA appears less often, so it stays out.

The Linear Weighted Moving Average crypto tool changes quickest to bitcoin price changes, then the Exponential MA, and lastly the SMA.

SMA, Linear Weighted Moving Average, Exponential Moving Average - Types of Bitcoin Moving Averages

SMA, Linear Weighted MA, Exponential Moving Average - Types of Bitcoin MAs Moving Averages - Simple Moving Average, Exponential Moving Average(MA) and LWMA

Intraday Trading Bitcoin with Exponential and Simple Moving Averages

The Simple Moving Average and Exponential Moving Average moving averages are the most often used Moving averages to trade bitcoin. Whereas the Exponential Moving Average bitcoin trading moving average has got a more sophisticated method and formula of calculation, its more popular than the Simple Moving Average bitcoin trading Moving Average.

Simple Moving Average is the arithmetic mean of the closing bitcoin trading prices in the bitcoin price period based on the set time period where each time period is added and then it is divided by the number of time bitcoin price periods chosen. If 10 is the bitcoin price period used the bitcoin price for the last ten bitcoin price periods added up then it's divided by 10.

SMA cryptocurrency technical indicator is the result of figuring out an average. Very simple and some Bitcoin traders often link it to the bitcoin trend because it closely follows what the bitcoin price does.

EMA on the other hand uses an acceleration factor and it is more responsive to the cryptocurrency trend.

The Simple Moving Average bitcoin trading moving average is used in cryptocurrency charts to analyze bitcoin price action. If the bitcoin price action in more than 3 or 4 time bitcoin price periods the Simple Moving Average then it's an indication that long cryptocurrency trade positions should be closed immediately & the bullish momentum of buy bitcoin trade is waning.

Shorter periods on the Simple Moving Average react quick to Bitcoin price shifts. This crypto tool shows clear details on BTCUSD trends and strength. Check its slope for momentum. A sharp rise or fall means a firm Bitcoin trend.

Bitcoin traders often use the Exponential Moving Average like others do. It shifts quicker to market changes. That's why some crypto folks like it more.

Simple and exponential moving averages help spot entry and exit points in Bitcoin trades. Pair them with Fibonacci and ADX indicators. This confirms the signals from the moving averages.

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